Top 10 Internet Themes for 2015: Mobile Pay, Connected Cars, Digital Coupons and More

By Lee Jackson Published Jan 23, 9:15AM EST

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Very few investors need to be informed on how huge the Internet has become, and how the sheer ubiquity is driving almost every aspect of business, the economy and overall life as we know it. The one thing that does change is the speed at which the technology and applications for the Internet are born, mature and then die off. A new report from Jefferies highlights the firm’s 10 top Internet themes for 2015 and how top stocks can benefit.

The Jefferies team highlighted some stocks they believe are the biggest beneficiaries of the themes, and we highlight others that may fit in nicely. One thing is for sure, the use of the Internet for everything under the sun will only continue its tremendous growth trajectory.

Here are the Jefferies top 10 Internet themes for 2015.

1. Online video will continue to be the fastest growing segment in digital advertising. YouTube stands to be a big winner, as does Google Inc. (NASDAQ: GOOG).

2. “Programming Direct” will become an increasingly important way to buy digital advertising.

3. The race in e-commerce fulfillment intensifies. The Jefferies team points out that free shipping is a component for a huge percentage of online purchases. Consumers want fast delivery, so fast fulfillment will be a huge priority. Amazon.com Inc. (NASDAQ: AMZN) and eBay Inc. (NASDAQ: EBAY) are potential winners.

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4) Acceptance of digital coupons accelerates. Groupon Inc. (NASDAQ: GRPN) could benefit.

5) Local digital advertising should get easier. The Jefferies analysts point out that emerging digital marketing models in combination with the explosion of mobile devices have enabled small, local advertisers to reach their targeted audiences at a reasonable cost. In 2015, they believe this trend will accelerate.

6) In the video game world, digital distribution takes root in the console market, benefiting the publishers, but could hurt retailers. In 2015, 15% to 20% of new console games may be downloaded. The Jefferies analysts expect that number to rise substantially over time. Electronic Arts Inc. (NASDAQ: EA) and Activision Blizzard, Inc. (NASDAQ: ATVI) may be winners.

7) Connectivity 3.0. The Jefferies team sees an increased focus and move to bring Internet connectivity to everything. This can range from cars and appliances to homes, and much more.

8) Year of the Car #1. As mentioned above, the Jefferies team sees the introduction of fully connected dashboards and reconfigurable UI (touchscreens) that could use Google Maps and Pandora Media Inc. (NYSE: P) streaming audio.

9) Year of the Car #2. Driverless vehicles could become more and more common in the future. Google and others, including the major car companies, are heavily involved in this. The major car companies will ultimately be players in this silo.

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10) Apple Pay to accelerate mobile pay adoption. Clearly Apple Inc. (NASDAQ: AAPL) is a beneficiary of this move, but also banks, retailers and a host of other industries are affected.

The Jefferies top 10 themes would seem to be a sure bet to be in play, not only this year but for many years to come. The revolution of Internet capacity, latency and ability should continue to expand exponentially for decades.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.